INVESTMENT SERVICES ACT (NOTIFIED CISs) REGULATIONS (notifiedciss)

SUBSIDIARY LEGISLATION 370.34

INVESTMENT SERVICES ACT

(NOTIFIED CISs) REGULATIONS

10th June, 2016

LEGAL NOTICE 219 of 2016, as amended by Legal Notices 240 of 2021,

294 of 2023 and 32 of 2025.

(1) The title of these regulations is the Investment Services

Act (Notified CISs) Regulations.

(1a) Unless the context otherwise requires, any references in any

other law or in any rule issued by the competent authority, made to the

Investment Services Act (List of Notified AIFs) Regulations shall be

read and construed as a reference to these regulations.

(2) These regulations shall not apply to alternative investment

funds and professional investor funds, which at any time are in

possession of a collective investment scheme licence granted by the

competent authority in terms of article 4 of the Act.

(1)

In these regulations, unless the context otherwise

requires

"the Act" shall mean the Investment Services Act;

"alternative investment fund" or "AIF" means any collective

investment scheme, including subfunds thereof, which raises

capital from a number of investors, with a view to investing it in

accordance with a defined investment policy for the benefit of

those investors, and which does not qualify as a UCITS Scheme in

terms of Directive 2009/65/EC of the European Parliament and of

the Council of 13 July 2009 on the coordination of laws,

regulations and administrative provisions relating to undertakings

for collective investment in transferable securities also referred to

as the "UCITS Directive";

"alternative investment fund manager" or "AIFM" means a legal

person whose regular business is managing one or more AIFs;

"Alternative Investment Fund Managers Directive" or "AIFMD"

means Directive 2011/61/EU of the European Parliament and of the

Council of 8 June 2011 on Alternative Investment Fund Managers

a n d a m e n d i n g D i r e c t i v e s 2 0 03 / 4 1 / E C an d 2 0 0 9/ 6 5 / E C a nd

Regulations (EC) No 1060/2009 and (EU) No 1095/2010, as

amended from time to time, and includes any implementing

measures that have been or may be issued thereunder;

"competent authority" means the Malta Financial Services

Authority established by the Malta Financial Services Authority

Act;

"custodian" means a licence holder authorised in terms of the Act to

provide custodian services and which qualifies as a Depositary or

Depositary Lite in terms of the Investment Services Rules;

"Directive 2004/39/EC" means Directive 2004/39/EC of the

European Parliament and of the Council of 21 April 2004 on

markets in financial instruments as amended from time to time, and

includes any implementing measures that have been or may be

issued thereunder;

"Due Diligence Service Provider" means a service provider

appointed in terms of regulation 18, that shall satisfy the

requirements laid out in the applicable Investment Services Rules;

"fund manager" means a legal person who manages one or more

Notified PIFs;

"governing body" means the body with ultimate decision making

authority in an AIFM or in an alternative investment fund, or in a

professional investor fund, as the case may be, comprising the

supervisory and the managerial functions;

"List of Notified AIFs" shall be understood as referring to the

List of Notified AIFs which is held by the competent authority on

its website in terms of these regulations;

"List of Notified PIFs" shall be construed as a reference to the List

of Notified PIFs which is held by the competent authority on its

website in terms of these regulations;

"Notified AIF" means an AIF which has been notified to the

competent authority by the AIFM for inclusion in the List of

N oti fi ed AIFs and is inc lud ed in th e L ist of N ot ified AIFs

maintained by the competent authority in terms of regulation 6;

"Notified CIS" means a Notified AIF or a Notified PIF;

"Notified PIF" means a PIF which has been notified to the

competent authority for inclusion in the List of Notified PIFs and

is included in the List of Notified PIFs held by the competent

authority in terms of regulation 17;

"professional investor fund" or "PIF" means a collective investment

scheme which qualifies as a professional investor fund in terms of the

Investment Services Rules;

"Regulation (EU) No 694/2014" means Commission Delegated

Regulation (EU) No 694/2014 of 17 December 2013 supplementing

Directive 2011/61/EU of the European Parliament and of the

Council with regard to regulatory technical standards determining

types of alternative investment fund managers.

(2) Words and expressions used in these regulations which are

also used in the Act but which are not defined herein shall have the

same meaning as in the Act.

Part A: Notified AIFs

For the purposes of this Part

"professional investor" shall be construed as a reference to the

investor category, in relation to Notified AIFs, as defined in

Investment Services Rules issued pursuant to regulation 8(3);

"qualifying investor" shall be construed as a reference to the

investor category, in relation to Notfied AIFs, as defined in Investment

Services Rules issued pursuant to regulation 8(3)

An AIFM may submit to the competent authority a request

for inclusion in the List of Notified AIFs as an AIF established in

Malta and meeting the criteria prescribed in regulation 4, provided

that the AIFM fulfils at least one of the following conditions

(a) the AIFM is in possession of an investment services

licence granted in terms of article 3 of the Act to

provide fund management services to AIFs established

in Malta; or

(b) the AIFM is authorised to provide services to an AIF

established in Malta in accordance with regulations 6

and 7 of the Investment Services Act (Alternative

Investment Fund Manager) (Passport) Regulations.

(1) An AIF in relation to which a notification may be

submitted in terms of these regulations may be established using

any one of the following structures

(a) an investment company with variable share capital

under the Companies Act (Investment Companies with

Variable Share Capital) Regulations;

(b) an investment company with fixed share capital under

the Companies Act (Investment Companies with Fixed

Share Capital) Regulations;

(c) an incorporated cell company under the Companies

Act (SICAV Incorporated Cell Company) Regulations;

(d) an incorporated cell of a Recognised Incorporated Cell

Company under the Companies Act (Recognised

Incorporated Cell Companies) Regulations;

(e) a limited partnership under the Companies Act;

(ea) a special limited partnership fund under the Investment

Services Act (Special Limited Partnership Funds)

Regulations;

(f)

a unit trust under the Trusts and Trustees Act; or

(g) a contractual fund under the Investment Services Act

(Contractual Fund) Regulations.

(2) The AIF can be established as an open-ended or a closed-

ended collective investment scheme as defined in Regulation (EU)

No 694/2014.

(3) The AIFM shall not submit a notification, in terms of

regulation 6, to the competent authority for the following

categories of collective investment schemes

(a) AIFs which are not externally managed by an AIFM;

(b) AIFs which are not marketed and sold exclusively to

professional and, or qualifying investors;

(c) Repealed by Legal Notice 240 of 2021.

(d) AIFs which invest in non-eligible assets as laid down in

Investment Services Rules.

(4) For the better carrying out of the provisions of these

regulations, the competent authority may issue and publish

Investment Services Rules laying down additional requirements in

relation to the conditions for inclusion and retention of AIFs on the

List of Notified AIFs including but not limited to the conditions

related to the notification of specific categories of AIFs.

Where the provisions of these regulations conflict with the

provisions of the regulations referred to in regulation 4(1), the

provisions of these regulations shall prevail.

(1) A written request for an AIF or for one or more

subfunds of a Notified AIF to be included in the List of Notified

AIFs shall be made in accordance with the provisions of this

regulation.

(2) Prior to the submission of a written request for notification

by the AIFM, the governing body of the AIF shall approve a

resolution certifying that the prospectus of the AIF satisfies the

minimum criteria prescribed by the competent authority in the

applicable Investment Services Rules.

(3) The request for notification of an AIF referred to in sub-

regulation (1) shall be made in the form and manner required by the

competent authority and shall contain such information as may be

prescribed or as may be laid down by the competent authority in the

Investment Services Rules. The request for notification shall be

accompanied by such fee as may be prescribed.

(4) The competent authority shall reject notifications which do

not comply with the requirements prescribed in these regulations

and the applicable Investment Services Rules.

(5) The AIFM shall submit the duly completed written

notification request together with the accompanying documents to

the competent authority within thirty (30) calendar days from the

date of the resolution of the governing body of the AIF approving

the AIF’s prospectus in terms of sub-regulation (2) and prior to the

effective date of the prospectus

Provided that the effective date of the prospectus shall be a

date after the inclusion of the AIF in the List of Notified AIFs.

(6) The competent authority shall, within ten (10) working days

from the date of filing of the duly completed notification request

together with the accompanying documents, include the AIF in the

List of Notified AIFs and, thereafter, the prospectus may be dated.

(7) Where the competent authority decides to reject a request

for notification of an AIF, it shall give notice in writing thereof to

the AIFM.

(8) The inclusion of an AIF in the List of Notified AIFs shall

not imply that the AIF is in possession of a licence granted in terms

of article 4 of the Act.

(9) The competent authority shall have the right to remove an

AIF from the List of Notified AIFs at any time after it has been

placed on such list.

(10) The inclusion of an AIF in the List of Notified AIFs is a

concession and a privilege revocable by the competent authority at

any time at its sole discretion on notice to the AIFM. The burden of

proving that the AIF should be retained on the List of Notified AIFs

shall rest at all times on the AIFM.

(11) For the better carrying out of the provisions of these

regulations, the competent authority may issue and publish

Investment Services Rules laying down additional requirements in

relation to the following

(a) the contents and format of the request for notification

of an AIF; and

(b) the accompanying documentation and the contents and

formats thereof including, inter alia, the prospectus.

(1) Prior to submitting a request for notification of an AIF,

the AIFM shall carry out the necessary due diligence process to

ensure that the service providers and the governing body of the AIF

satisfy, at the time of notification, the high standards of fitness and

properness specified by the competent authority.

(2) The AIFM shall undertake and ensure that each service

provider and member of the governing body of the AIF maintain

such standards on an ongoing basis and immediately notify the

competent authority of any change in such circumstances as they

become known to the AIFM.

(3) The AIFM shall keep records of all evidence of, and

correspondence regarding, the due diligence process carried out in

relation to the service providers and the members of the governing

bo d y o f th e A I F. S uc h r e c o r ds sh a l l b e m a d e a va i l a b l e f o r

inspection upon request by the competent authority.

(4) For the better carrying out of the provisions of these

regulations, the competent authority may issue and publish

Investment Services Rules laying down requirements in relation to

the fitness and properness standards expected by the competent

authority.

(1) Notified AIFs shall only be marketed to professional

investors and, or qualifying investors.

(2) Where the AIFM intends to market the Notified AIF on a

cross-border basis under the Investment Services Act (Marketing of

Alternative Investment Funds) Regulations, the Notified AIF shall

be marketed to professional investors or as otherwise permitted in

the applicable jurisdiction where the AIFM is marketing the AIF.

(3) For the better carrying out of the provisions of these

regulations, the competent authority may issue and publish

Investment Services Rules laying down the investor eligibility

criteria.

The AIFM shall ensure that an AIF included in the List of

Notified AIFs complies on an ongoing basis with the provisions of

the Act, any applicable rules or regulations issued thereunder,

including these regulations

Provided that where applicable the AIFM shall also comply

with any obligations in respect of the AIF, its investors and the

AIFM’s regulator under AIFMD and the relevant ru les and

regulations thereunder;

Provided further that for the better carrying out of the

provisions of these regulations, the competent authority may issue

and publish Investment Services Rules outlining the ongoing

obligations which must be complied with by the AIFM in relation

to the Notified AIF.

(1) The governing body of the Notified AIF, in agreement

with the AIFM shall appoint a money laundering reporting officer to

carry out the money laundering reporting function in relation to the

Notified AIF.

(2) The governing body of the Notified AIF may delegate the

money laundering reporting function to the fund administrator of

the Notified AIF. In such cases, the fund administrator shall be

responsible for fulfilling the reporting obligations of the Notified

AIF

Provided that where the AIFM has delegated the money

laundering function in accordance with this sub-regulation, the

administrator of the Notified AIF shall be required to confirm to

the AIFM and the governing body of the AIF that the record-

keeping, reporting, ongoing monitoring, risk management and any

other measure being conducted by the administrator comply with

the requirements prescribed in the Prevention of Money

L a u n d e r i n g a n d F un d i n g o f Ter r o r i s m R e g u l a t i o n s an d t he

Implementing Procedures issued thereunder.

(3) For the better carrying out of the provisions of these

regulations, the competent authority may issue and publish

Investment Services Rules laying down the obligations of the

Notified AIF and the AIFM pursuant to the Prevention of Money

L a u n d e r i n g a n d F un d i n g o f Ter r o r i s m R e g u l a t i o n s an d t he

Implementing Procedures issued thereunder.

(1) The AIFM shall submit a request to the competent

authority for removal of the Notified AIF from the List of Notified

AIFs in the following circumstances

(a) upon expiration of the duration of the AIF or its

winding up;

(b) in any case where the custodian has given notice of

termination under the custody agreement or is in

liquidation or subject to bankruptcy proceedings or has

had its license to provide custody services in respect of

AIFs suspended or cancelled

Provided that the AIFM shall request the competent

authority to remove the Notified AIF from the List of

Notified AIFs where the transitional period agreed to

between the parties in terms of regulation 8 of the

Investment Services Act (Custodians of Collective

Investment Schemes) Regulations, will expire in less

than ten (10) working days and the AIFM has not

entered in any arrangements with a substitute

custodian or where at any time during such transitional

period, it becomes clear to the AIFM that a

replacement custodian will not be appointed before the

end of the transitional period;

(c) in any case where the AIFM has given notice of

termination or is in liquidation or subject to

bankruptcy proceedings or has had its license to act as

an AIFM suspended or cancelled and an eligible

replacement AIFM has not been appointed;

(d) in any case where any member of the governing body

of the AIF or any service provider appointed by the

AIF or by the AIFM on behalf of the Notified AIF fails

to comply on an ongoing basis with the required high

standards of fitness and properness and the AIFM has

not arranged for a replacement member of the

governing body or service provider to be appointed;

(e) in all other cases as may be specified in the agreement

between the Notified AIF and the AIFM as grounds for

requesting removal of the Notified AIF from the List

of Notified AIFs in terms of this regulation;

(f)

in all other cases as may be specified in the custody

agreement between the Notified AIF or the AIFM on

behalf of the Notified AIF and the custodian as

grounds for requesting removal of the Notified AIF

from the List of Notified AIFs in terms of this

regulation; and

(g) in all other cases as may be prescribed in the

Investment Services Rules.

(2) Upon removal from the List of Notified AIFs, the AIF must

cease trading other than for the purpose of winding down the

operations of the AIF or subfund and the AIF or subfund must then

be liquidated or otherwise terminated in accordance with the

requirements of Maltese law.

(3) For the better carrying out of the provisions of these

regulations, the competent authority may issue and publish

Investment Services Rules laying down the conditions applicable in

relation to the removal of the AIF from the List of Notified AIFs.

(1) The AIFM shall submit a notification to the competent

authority of any amendments to the prospectus of a Notified AIF

together with an updated copy thereof provided that the prospectus

complies with the applicable Investment Services Rules.

(2)

The AIFM shall submit a notification in terms of sub-

regulation (1) within thirty calendar (30) days from the date of the

resol ution of the gov erning body of the AIF approvin g the

amendments to the prospectus of the Notified AIF.

(3) The competent authority shall acknowledge receipt of the

amendments to the prospectus within five (5) working days from the

date of filing of the notification request with the competent

authority.

(4) Changes to the prospectus shall not be effective until such

time as they are acknowledged by the competent authority.

For the better carrying out of the provisions of this Part, the

competent authority may from time to time issue and publish

Investment Services Rules outlining additional requirements in

respect of this Part.

Part B: Notified PIFs

For purposes of this Part

"professional investor" shall be construed as a reference

to the investor category, in relation to Notified PIFs, as defined

in Investment Services Rules issued by the competent authority

pursuant to regulation 25.

"qualifying investor" shall be construed as a reference to

the investor category, in relation to Notified PIFs, as defined in

Investment Services Rules issued by the competent authority

pursuant to regulation 25.

(1)

A PIF in relation to which a notification may be

submitted in terms of these regulations may be established using any

one of the following structures

(a)

an investment company with variable share

capital under the Companies Act (Investment Companies with

Variable Share Capital) Regulations;

(b)

an investment company with fixed share capital

under the Companies Act (Investment Companies with Fixed

Share Capital) Regulations;

(c)

an incorporated cell company under the

Companies Act (SICAV Incorporated Cell Company)

Regulations;

(d)

an incorporated cell of a Recognised Incorporated

Cell Company under the Companies Act (Recognised

Incorporated Cell Companies) Regulations;

(e)

a limited partnership under the Companies Act;

(ea)

a special limited partnership fund under the

Investment Services Act (Special Limited Partnership Funds)

Regulations;

(f)

a unit trust under the Trusts and Trustees Act; or

(g)

a contractual fund under the Investment Services

Act (Contractual Fund) Regulations.

(2)

A notification to the competent authority in terms of

regulation 17, shall not be submitted for the following categories of

collective investment schemes

(a)

Repealed by Legal Notice 32 of 2025;

(b)

PIFs which are not marketed and sold exclusively

to qualifying investors and, or professional investors;

(c)

PIFs which invest in non-eligible assets as laid

down in Investment Services Rules.

Where the provisions of these regulations conflict with

the provisions of the regulations referred to in regulation 15(1), the

provisions of these regulations shall prevail.

(1)

A written request for a PIF or for one or more sub-

funds of a Notified PIF to be included in the List of Notified PIFs shall

be made in accordance with the provisions of this regulation.

(2)

Prior to the submission of a written request for

notification under this regulation, the governing body of the PIF shall

approve a resolution certifying that the Offering Memorandum of the

PIF satisfies the minimum criteria laid down by the competent

authority in the applicable Investment Services Rules.

(3)

The request for notification of a PIF referred to in sub-

regulation (1) shall be made in the form and manner required by the

competent authority and shall contain such information as may be

prescribed or as may be laid down by the competent authority in the

Investment Services Rules. The request for notification shall be

accompanied by such fee as may be prescribed.

(4)

The competent authority shall reject notifications which

do not comply with the requirements prescribed in these regulations

and the applicable Investment Services Rules, including where the

competent authority determines that anyone referred to in sub-

regulation (1) or sub-regulation (2) does not meet the competent

authority’s standards for fitness and properness.

(5)

The PIF, or a person duly authorised by it to act on its

behalf, shall submit the duly completed written notification request,

together with the accompanying documents, to the competent

authority within thirty (30) calendar days from the date of the

resolution of the governing body of the PIF approving the PIF’s

Offering Memorandum in terms of sub-regulation (2), and prior to the

effective date of the Offering Memorandum

Provided that the effective date of the Offering

Memorandum shall be a date subsequent to the date of inclusion of the

PIF in the List of Notified PIFs.

(6)

The competent authority shall, within ten (10) working

days from the date of filing of the duly completed notification request

together with the accompanying documents, which shall be to the

satisfaction of the competent authority, include the PIF in the List of

Notified PIFs and, thereafter, the Offering Memorandum shall be

dated.

(7)

Where the competent authority decides to reject a request

for notification of a PIF, it shall give notice in writing thereof to the

PIF.

(8)

The inclusion of a PIF in the List of Notified PIFs shall

not imply that the PIF is in possession of a licence granted in terms of

article 4 of the Act.

(9)

The competent authority shall have the right to remove a

PIF from the List of Notified PIFs at any time after it has been placed

on such list where the competent authority deems this fit in the interest

of safeguarding investors, the integrity of the markets and, or the

stability and reputation of the financial sector, including in those

circumstances where

(a)

it considers that any of the members of the

governing body, any service provider, including the Due

Diligence Service Provider, or functionary that the PIF may

appoint is not a fit and proper person to carry out the functions

required of them in connection with the Notified PIF;

(b)

it considers that the Notified PIF does not fulfil

the requirements of any provision of the Act, or of any

Investment Services Rules or regulations made thereunder, or

there has been a contravention of any such provision as

aforesaid, or an obligation or condition to which the Notified

PIF is subject, has not been satisfied or complied with;

(c)

information has been furnished to the competent

authority by or on behalf of or in relation to the Notified PIF

which is false, inaccurate or misleading;

(d)

the Notified PIF has not commenced those

activities in relation to which it was placed by the competent

authority on the List of Notified PIFs, or has ceased to carry on

such activities;

(e)

for any other reason, it considers it desirable to

remove the Notified PIF from the list of Notfied PIFs for the

protection of investors and the general public and the reputation

of Malta taking into account Malta’s international

commitments;

(f)

the Notified PIF is either declared bankrupt, or

goes into liquidation, or makes a composition with its creditors,

or is otherwise dissolved; or

(g)

made pursuant to a request under regulation 22.

(10) The inclusion of a PIF in the List of Notified PIFs is a

concession and a privilege revocable by the competent authority at any

time at its sole discretion on notice to the Notified PIF. The burden of

proving that the Notified PIF should be retained on the List of Notified

PIFs shall rest at all times on the Notified PIF.

(1)

Prior to submitting a request for notification of a

PIF, the PIF shall appoint a Due Diligence Service Provider to carry

out the necessary due diligence process to ensure that the governing

body, founder shareholders, Money Laundering Reporting Officer

(MLRO) and any other service providers or functionaries the PIF may

appoint, satisfy at the time of notification, the high standards of fitness

and properness required by the competent authority in terms of the

Investment Services Rules.

(2)

The Due Diligence Service Provider appointed in terms

of this regulation shall undertake and ensure that each member of the

governing body, founder shareholder, Money Laundering Reporting

Officer (MLRO) and any other service provider or functionary the PIF

may appoint, maintains such standards on an ongoing basis, and shall

immediately notify the competent authority of any change in such

circumstances as they become known to such Due Diligence Service

Provider.

(3)

The Due Diligence Service Provider appointed in terms

of this regulation shall keep records of all evidence of, and

correspondence regarding, the due diligence process carried out in

relation to the governing body of the PIF, founder shareholders,

Money Laundering Reporting Officer (MLRO), and any other services

providers or functionaries the PIF may appoint. Such records shall be

made available for inspection upon request by the competent authority.

(4)

Without prejudice to any other power of the competent

authority in terms of the Act and any other law, the provisions of

articles 13, 15 and 16 of the Act shall mutatis mutandis apply to any

Due Diligence Service Providers appointed in terms of this regulation.

(1)

Notified PIFs may only be

marketed

to

professional investors and, or qualifying investors.

(2)

A Notified PIF may only be promoted in jurisdictions

outside Malta if it satisfies the relevant rules of such jurisdictions.

(1)

The Notified PIF shall ensure that it complies on

an ongoing basis with the provisions of the Act, any applicable rules or

regulations issued thereunder, including these regulations

Provided that notwithstanding the provisions of this Act

or any other law, the governing body of the Notified PIF shall be

jointly and severally liable with the Notified PIF.

(2)

A Due Diligence Service Provider appointed or proposed

to be appointed in terms of regulation 18 shall also satisfy the

requirements and comply with any applicable provisions of the Act,

regulations or rules issued thereunder, and with any other applicable

law.

(1)

The Notified PIF, by written agreement with the

Due Diligence Service Provider appointed in terms of regulation 18,

shall appoint a money laundering reporting officer (MLRO) within the

meaning of regulation 15 of the Prevention of Money Laundering and

Funding of Terrorism Regulations, to carry out the money laundering

reporting function in relation to the Notified PIF.

(2)

The Notified PIF may delegate the money laundering

reporting function to the money laundering reporting officer of the

fund administrator of the Notified PIF. In such cases, the fund

administrator shall be responsible for fulfilling the reporting

obligations of the Notified PIF

Provided that where the money laundering function has

been delegated in accordance with this sub-regulation, the

administrator of the Notified PIF shall be required to confirm to the

Due Diligence Service Provider appointed in terms of regulation 18

and to the governing body of the PIF that the recordkeeping, reporting,

ongoing monitoring, risk management and any other measure being

conducted by the administrator, comply with the requirements

prescribed in the Prevention of Money Laundering and Funding of

Terrorism Regulations and the Implementing Procedures issued

thereunder.

(1)

The Notified PIF shall submit a request to the

competent authority for the removal of the Notified PIF from the List

of Notified PIFs in the following circumstances

(a)

upon expiration of the duration of the Notified PIF

or its winding up;

(b)

where the Notified PIF has appointed a custodian,

in any case where such custodian has given notice of

termination or is in liquidation or subject to bankruptcy

proceedings or has had its authorisation to act as a custodian

suspended or cancelled, and an eligible replacement custodian

has not been appointed or adequate alternative arrangements for

the safekeeping of the Notified PIF’s assets have not been

established;

(c)

where it becomes clear to the governing body that

adequate safekeeping arrangements are no longer in place;

(d)

in any case where the Notified PIF is externally

managed by a fund manager and the fund manager of the

Notified PIF

(i)

has given notice of termination;

(ii)

is in liquidation;

(iii)

is subject to bankruptcy proceedings; and,

or

(iv) has had its authorisation to act as a fund

manager suspended or cancelled and an eligible

replacement fund manager has not been appointed;

(e)

in any case where any member of the governing

body of the Notified PIF or any functionary or service provider,

including the Due Diligence Service Provider, appointed by the

PIF fails to comply on an ongoing basis with the required high

standards of fitness and properness, and no replacement

member of the governing body or functionary or service

provider has been appointed, or arrangements are in place to be

appointed;

(f)

in so far as the Notified PIF is externally managed

by a fund manager, in those cases as may be specified in the

agreement between the Notified PIF and its fund manager as

grounds for requesting removal of the Notified PIF from the

List of Notified PIFs in terms of this regulation;

(g)

where the Notified PIF has a custodian appointed,

in all other cases as may be specified in the custody agreement

between the Notified PIF and the custodian as grounds for

requesting removal of the Notified PIF from the List of Notified

PIFs in terms of this regulation; and

(h)

in all other cases as may be laid down in the

Investment Services Rules.

(2)

Upon removal from the List of Notified PIFs, the PIF

shall cease trading, other than for the purpose of winding down the

operations of the Notified PIF or the sub-fund, as the case may be, and

the Notified PIF or the sub-fund shall then be liquidated or otherwise

terminated in accordance with the requirements of Maltese legislation.

(1)

Notified PIFs shall be exempt from obtaining the

approval of the competent authority in terms of article 11(1)(a) of the

Act.

(2)

The exemption provided in sub-regulation (1) shall also

be applicable to any amendments to the Offering Memorandum of a

Notified PIF.

Where a custodian is appointed, the Provisions of the

Investment Services Act (Custodians of Collective Investment

Schemes) Regulations, applicable to custodians of Professional

Investor Funds, shall be mutatis mutandis applicable to custodians of

Notified PIFs.

(1)

For the better carrying out of the provisions of this

Part of these regulations, the competent authority may from time to

time issue and publish Investment Services Rules outlining additional

requirements in respect of this Part of these regulations.

(2)

Without prejudice to the generality of sub-regulation (1),

Investment Services Rules issued in accordance with this regulation

may inter alia provide

(i)

additional requirements in relation to the

conditions for inclusion and retention of PIFs on the List of

Notified PIFs, including but not limited to the conditions

related to the notification of specific categories of PIFs;

(ii)

additional requirements in relation to the contents

and format of the request for notification of a PIF;

(iii) additional requirements in relation to the

accompanying documentation and the contents and formats

thereof;

(iv) additional requirements in relation to the Offering

Memorandum and the contents and format thereof;

(v)

requirements in relation to the fitness and

properness standards expected by the competent authority;

(vi) the criteria for eligibility for appointment as a

service provider in terms of regulation 18;

(vii) the criteria for eligibility for appointment as a

fund manager of a Notified PIF in cases where such Notified

PIF is externally managed;

(viii) additional criteria regarding investor eligibility;

(ix) the ongoing obligations that shall be complied

with by the Due Diligence Service Provider appointed in terms

of regulation 18 in relation to the Notified PIF;

(x)

the conditions applicable in relation to the

removal of the PIF from the List of Notified PIFs; and

(xi)

additional requirements in relation to Notified

PIFs which are not externally managed by a fund manager.

Part C: Administrative Penalties, Administrative Measures and

Appeals

(1)

Without prejudice to any other power assigned to

the competent authority under the Act, these regulations or any other

law, where a person falling within the scope of these regulations fails

to comply with any of the provisions of these regulations or any rules

issued thereunder which further implement these regulations, the

competent authority may, by notice in writing impose on such person

an administrative penalty and other administrative measures in

accordance with article 16A of the Act.

(2) A right of appeal to the Financial Services Tribunal shall lie

from the decisions which the competent authority shall take under

these regulations and the provisions of article 19 of the Act shall apply

mutatis mutandis.